Public Private PartnershipIdentification, Viability and
Implementation
Prof. Yashvir Tyagi
Department of Economics
Univesity of Lucknow
Public Private Partnership
Need For PPP
Objective of PPP
Nature of PPP
Scope of PPP
Definition of PPP
“PPP means a project based on
contract or concession agreement
between the govt. or a statutory
entity on the one side and a private
sector company on the other side for
delivering an infrastructure service
on payment of user charges” (G.O.I.)
PPP
It is aLong term contractual partnership
between public & private agencies
for:
Designing
Financing
Implementing
Operating & managing an
infrastructural service
PPP
.
.
.
.
Collaboration or partnership is
based on the expertise of each
partner through appropriate
allocation of:
Resources
Risks
Rewards
Responsibilities
Identification Of Projects
Assessment of the need for existing
/new service
Review of present status of delivery
of service
Identifying the gap
SWOT analysis may be conducted
Potential Areas of PPP
Roads
Telecommunication
Transport
Health
Education
Irrigation
Marketing
Energy
Social Welfare
Preparing for the Viability of a PPP
Project
General Aspects:
Name of the Project
Location
Administrative Department/Ministry
Implementing Agency
Project Description
Aims and Objectives, Justification
Possible Alternatives
Estimated Capital cost
Major heads of Expenditure
Phasing of Investment
Implementation Schedule
Financing Arrangements
Sources of Financing-Debt , Equity,
Grants etc.
Fixation of Tariff/user charges
Indicate Revenue streams of the
project
Calculating the NPV, ERR,IRR
Funding Agencies- Domestic ,
Foreign
Clearances from Regulatory Bodies
Environmental
Forest
Local, State, Central Govt.
Govt. Guarantees
Compensation to Citizens
Criteria for Short listing
One stage process
Two stage process
Criteria for Evaluating the Bids
Preparing the bid documents
Legal
Technical
Administrative
Clearances
Terms of Concession Agreement
Nature of Concession
Justification of Concession
Period of Concession
Period of Construction
Procurement of Materials
Supervision
Operation & Management
Monitoring the Construction
Joint or Single management- Roles&
responsibilities
Laying down the Standards
Penalties for Violations
Delays
Safety
Financial
Liabilities of the Partners
Closure Clause
Miscellaneous
Audit
Dispute Setllement